How do ISV's help banks build AI-ready KYC?

Independent Software Vendors (ISV’s) have long helped banks modernize by delivering flexible, interoperable technology. Now, as Artificial Intelligence (AI) takes center stage in financial innovation, ISVs like Encompass are playing an even more pivotal role. Laying the foundation for AI-ready data and smarter compliance.

What is an ISV and why does it matter in banking?

An ISV is a company that develops software solutions independently of hardware providers or larger platform ecosystems. In banking, ISVs are trusted technology partners that offer targeted innovation without forcing institutions into closed or proprietary ecosystems.

ISV’s help banks maintain flexibility, avoid vendor lock-in, and move faster in response to changing market and regulatory conditions.

Why vendor lock-in limits digital transformation

Vendor lock-in occurs when a bank becomes overly dependent on a single technology provider. This dependency makes it hard to switch providers or adopt third-party tools, creating long-term challenges, such as:

Reduced flexibility to adopt innovative or better-suited solutions.
Higher costs due to premium pricing for upgrades or integrations.
Slower response to market and regulatory changes.

Vendor lock-in not only limits innovation but can also affect compliance and competitiveness.

How ISV’s help banks stay flexible and future-ready

ISV’s offer an alternative path. By partnering with independent software vendors, banks can implement advanced solutions while retaining control of their systems. Benefits include:

Interoperability: ISV solutions are designed to work with existing platforms, such as CLM (Client Lifecycle Management) and Customer Relationship Management (CRMs).
Customization: Software can be tailored to meet the bank’s specific operational, compliance, or regional needs.
Scalability: Features can grow with the bank’s needs, supporting long-term transformation.
Cost efficiency: Banks can avoid unnecessary software bundles and reduce reliance on proprietary licensing.

Real-world examples of ISV impact on banking

Leading financial institutions can work with ISVs like Encompass to accelerate their AI-readiness and compliance outcomes:

A leading global bank could integrate an ISV-powered solution within its CLM platform, to reduce end-to-end onboarding processing times by up to 32% while maintaining interoperability with existing systems.
A Tier 1 US bank could use an ISV to automate KYC compliance, to achieve 59% efficiency savings and ensuring seamless integration with regulatory reporting tools.
A multinational financial institution could partner with an ISV to enhance data validation processes, making 11% savings on hiring, onboarding and training in year one.
By getting the right data and process foundations in place, banks can take full advantage of AI and Corporate Digital Identity (CDI) solutions. CDI is a trusted, reusable digital representation of a corporate customer’s identity and key information. Enabling faster onboarding, periodic reviews and more secure interactions across multiple counterparties and jurisdictions.

Why EC360 from Encompass is ideal for AI transformation

Encompass is more than just an ISV; it is a strategic partner for banks accelerating their AI transformation journeys. EC360, our CDI platform, is designed to deliver AI-ready KYC data by turning fragmented, inconsistent client information into structured, automated, and actionable digital profiles.

Built API-first, EC360 enables seamless integration with AI models, core banking systems, and compliance workflows, powering everything from onboarding to perpetual KYC.

EC360 delivers:

Seamless integration with existing CLM, CRM, and KYC infrastructure, reducing disruption and enabling rapid deployment.
Automated KYC workflows that eliminate manual effort and streamline compliance across the full lifecycle.
Structured, standardized data that is immediately consumable by AI systems for training, inference, and decision-making.
Real-time corporate digital profiles with complete ownership mapping, audit trails, and data lineage for regulatory confidence.
A future-proof data foundation that evolves with regulatory change, supports scalable AI use cases, and keeps banks in control of their tech stack.

With EC360, banks gain not only compliance confidence, but a modern data infrastructure built for intelligent automation and future innovation.

AI-ready KYC starts with strong data foundations

As the financial industry moves toward greater automation, AI adoption is no longer a question of if, but how. The first step is ensuring your data is AI-ready. That means structured, clean, standardized information, delivered through platforms like EC360.

Partnering with ISVs like Encompass empowers banks to take control of their technology, escape vendor lock-in, and build the robust, future-proof data infrastructure that AI demands.

Discover how Encompass’ CDI solution can help your bank navigate digital transformation with confidence.

Author: David Williams

David has over twenty years of Financial Services experience working in banks and solution providers solving challenges and managing risks across Onboarding, Data, KYC and Collateral (PB & OTC), and has a strong understanding of the front to back and end to end process and business. He is an experienced BAU manager with a track record for bringing transformational change by defining or refining Operating and engagement models, establishing or aligning functions and creating a culture and passion for change within teams. David is a recognised industry thought leader and transformational change agent across the regulatory landscape within Asia Pacific for local rules and the impact of global reforms to local business.